Express your opinion on the liberalization of international trade in services under GATS - indicate strengths and weaknesses of this process.

(you may take a look at the attachments)

Barriers to international trade in services The level of protection in service trade is much higher than in merchandise trade because; . The liberalization of service trade is much more difficult than of merchandise trade - different types of barriers, more diversified barriers, more hidden barriers (e.g. domestic regulations at national, regional and local levels) and barriers that are more difficult to be monitored. . The liberalization of service trade (on global market) has started since 1995 with the very low level of openess in the first stage of liberalization (the focus was on defining service trade).General and specific commitments - Services covered by the GATS are not automatically opened to competition. - WTO members guarantee access to their markets only in those sectors and modes of supply specified in their "schedules of commitments", subject to any "limitations\" they wish to maintain. These schedules provide legally binding commitments. - Only general obligations apply across all services covered by the GATS. GATS consists of three main types of commitments/obligations: . General obligations - apply directly and automatically to all WTO members, regardless of the existence of sectoral commitments . Individual countries' specific commitments - limited to those sectors and activities in which a WTO member has decided to assume market access and national treatment obligations . Annexes dealing with rules for specific sectors (financial services, telecommunications, air transport)